How Much!?

Hey There Income Traders,

How much green has been created globally in less than two years?

If you guessed $20 trillion dollars of new money printed by central banks around the world, you are correct.

All that money and we still have two of the world’s largest economies, China and Europe, in a growth slowdown.

That can only mean one thing … more printing.

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Now, with global money managers already overweight US equities by 30% (which is the highest level since 2000) what can we expect for 2022?

 

Today, I’ll show you what else global governments have been doing and how that will impact markets in the months ahead.

 

More Printing & Borrowing Ahead

 

Besides all the printing to keep the economy going during the pandemic, global governments are also issuing green bonds — to the tune of $2 trillion so far — so they can invest in green energy. 

 

We should see that money spent on things like …

 

      • Steel for windmills
      • Copper for EVs
      • Silver for Solar & EVs

 

For traders and investors, the risk/reward plays for green energy are BHP Group (Ticker: BHP), RIO Tinto Plc. (Ticker: RIO) and VALE S.A. (Ticker: VALE). 

 

These three diversified major producers mine iron ore, coal, copper and nickel, which all expected to be in great demand in the years ahead.

 

They all put in a new low this week while RSI put in a higher low — a positive divergence reversal pattern … 

 

Check out the divergence between this group and the S&P 500 as the group has seen tremendous selling since Q2 began due to the weakness in China: 

 

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I like building a position in them for the next few weeks and holdin  into Q2 2022.

 

My top choice of the group is BHP. They are a leading miner supplying iron ore, copper, oil, gas, and metallurgical coal. 

 

My valuation model has them trading at a 10% discount and they also confirmed a positive price/RSI divergence.

 

Let’s take a look at the chart …

 

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Bring It Home

 

This is the time of year to look at the big picture and beyond the end-of-year flows, which can be driven by tax loss sales, price manipulation for year-end pricing and end-of-year liquidity issues.

 

The Power Income Trader  policy gauge is flashing full green into next year and I also expect a Build Back Better deal will be signed in January at the latest. 

 

>> REMINDER: INTRO PRICING ON POWER INCOME TRADER ENDS TODAY. <<

 

I see big first quarter flows into green energy resources and these three stocks are a good bet on that. 

 

Have a great week and as always …

 

Live and Trade With Passion My Friends,

 

Griff

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